As an investor, there are many questions that you do ask. That is nice. Now consider the following questions and see how many of you have asked the following questions:
1. Am I earning to the best of my potential: The best way for a company to do well is to do more sales. Shutting off the ac when not required, using public transport, using a train instead of a plane are all fine…but increasing sales is the super best answer. Similarly for an individual (the average age of a guy reading this blog is 33) is to increase your income. Are you in your best job? or are you just being lazy? Sorry, no excuses here.
2. As a corollary to 1 are you saving enough?
3. Is your asset allocation EQUITY oriented?
4. What if I am wrong – about the macro and with the stock that I picked?
5. I have learnt sector picking..should I pick a sectoral fund or ASSUME that I know stock picking also?
6. What are my advisor’s incentive? Is there a conflict for him and for me?
7. What (truthfully) is my time frame? Is it ‘permanent’ like Warren Buffett says?
8. Will I sell this investment, and will I really sell it?
9. Do I blame others for my investment mistakes?
10. Why am I listening to people who are incompetent, guessing, or benefitting from velocity of transactions?
11. Do I have a process in place, and do I have the guts to look at my process strategically and review?
12. Will i have a peer review done for my portfolio?
13. How did I react during the past market downturns? how often do I read about my experiences..
14. What am I doing to fight the biases?
15. Will I get a paid review of my portfolio?
16. Am I understanding the risk of this portfolio, sector allocation going wrong, and stock selection going wrong?
17. In the past one year, Torrent power has gone up dramatically, Tata Power has stagnated and GMR has come down. So much for my sector identification, MY left foot.
18. Should I fight my biases or treat some of them as experience moat builders ?
19. How do I handle my OWN insecurities while creating a portfolio?
20. My pain threshold of losing money is increasing – how do I deal with that…?
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